ISLAMABAD: Commerce Minister Jam Kamal Khan told the National Assembly on Thursday that Pakistan will not incur a \$1 billion loss from the United States’ new 19% tariff, as the rate marks a reduction from the previous 29% duty on Pakistani goods.
Responding to lawmakers, the minister said the lower tariff is expected to boost Pakistani exports — particularly textiles — to the US market. “This reduction will increase sales of Pakistani products and strengthen our trade position,” he noted.
The announcement comes as former US President Donald Trump’s revised tariff schedule took effect on Thursday, imposing rates of 10% to 50% on dozens of trading partners. Pakistan’s tariff was set at 19% following negotiations that resulted in a trade agreement between the two countries.
Finance Minister Muhammad Aurangzeb, who led the final talks, called the deal a marker of a broader economic and strategic partnership. Trump also announced plans for US–Pakistan cooperation to develop Pakistan’s oil reserves, with discussions underway to select the lead oil company for the venture.
The US is Pakistan’s largest textile market, with Islamabad posting a \$3 billion trade surplus with Washington in 2024.
